Interest is the price paid by a money borrower for the use of a money lender's money. The original amount lent is knows as the principal, and the percentage of the principal which must be paid annually as interest is called the interest rate.

Prior to 1958 there were no universal credit cards. Each merchant made their own credit-granting decisions and issued their own charge cards. Actually, it was rare that a card was even issued in the early days. Other than oil companies, most merchants kept paper files that listed your balance and your credit limit.

The WSJ (Wall Street Journal) Prime Rate is a prime rate index that is recognized around the world. It is one of many indexes but the significant way the WSJ Prime Rate differs from the others is its update frequency.

Credit card balances usually skyrocket in January, with big spenders seeing the effects of their Christmas expenditures on paper, and this year was no different, but there was a significant drop compared to previous Christmas financial hangovers.

Britons put Christmas on the plastic in 2007, with a record amount of £32 billion spent on credit and debit cards in December alone, but the proportion of this for which credit cards are accountable has dropped as consumers heed the credit squeeze, and debit card use grew 6.8 per cent to £20.9 billion.

According to moneysupermarket.com, credit card customers are being taken for a ride as many providers force cardholders to pay off their lowest interest debts first, leaving the more expensive debts until last.

Credit card holders pay a high price for not comparing deals, says OFT

The Co-operative bank is further securing its position and one of Britain's best-known ethical banks with the launch of its new affinity credit card with Friends of the Earth.

Even if a credit card account is paid faithfully, the issuer can opt to hike its interest rate if a cardholder has made late payments on other bills, such as car loans, utility bills and other credit cards. This is called universal default. "Having a credit card when you're in college is a fabulous opportunity to build a positive credit history," says Cunningham. "Likewise, they have to understand that the opportunity exists for them to destroy their credit history and hamper their future borrowing power. The job, the apartment, the new car, the insurance: All of those pull your credit report." If students can make that connection early on, she says, "I can't imagine anyone intentionally digging that financial hole knowing that that's going to be the result."

Cashless colleges: Student IDs turn into payment systems. Today's student ID cards open doors to dorms and labs, earn discounts with local merchants, sub-in for loose change at vending and copy machines, and even help with the laundry. 3 must-ask questions for multiuse college campus cards. Campus cards, like anything involving money, are not free from potential pitfalls, and the cards' fees and policies can be as different as Buckeyes and Wolverines. Kassar wants his students to leave class understanding the difference between good and bad debt. "Good debt involves debt that creates likely future value," says Kassar. "Such debt includes real estate, business loans, student loans... Bad debt involves the purchase of disposable or durable goods using credit cards that charge high interest, without paying the balance in full."